7-ELEVEN SACKS WAGE PANEL FOR INTERNAL INVESTIGATION

7-ELEVEN SACKS WAGE PANEL FOR INTERNAL INVESTIGATION

7-ELEVEN has dismissed an independent wage panel set to investigate the underpayment of its workers, a decision which has caused concern with the Fair Work Ombudsman.

The Fels Wages Panel, which was looking into recovering the lawful entitlements of 7-Eleven workers, has been sacked and will be replaced by an internal unit.

While the Fair Work Ombudsman has raised concern over the decision, 7-Eleven chair Michael Smith says the transition of the claims process will continue.

"It is important to state unequivocally that the process for claims will continue and 7-Eleven will pay all legitimate claims by franchisee employees for the past underpayment of wages," says Smith.

"We will ensure claimant confidentiality and the independence of the proposed internal unit that will be responsible to the CEO, be separated from all operational aspects and staff within the business and staffed by appropriately qualified individuals and backed by secretariat."

The new unit will be dedicated to the claims process full-time.

"It is incumbent upon 7-Eleven to take responsibility for this process," says Smith.  "Ethical corporate standards cannot and should not be outsourced.  We are happy to be held to the standards we have set for and expect ourselves."

Smith says it is prepared to fund additional resources for the Fair Work Ombudsman should that be required for it to take an active oversight role.  The Fair Work Ombudsman responded saying this was both "unacceptable" and "ludicrous."

"In fact, the Fair Work Ombudsman confirms it has active, ongoing investigations into a number of 7-Eleven franchisees," it says in a statement.

"There is also a real prospect that we will take legal action against more 7-Eleven operators."

Since July 2009, the Fair Work Ombudsman has placed eight matters before the court involving 7-Eleven franchisees, one of which was a record penalty of more than $214,000.

The Fair Work Ombudsman says it recognises the fear that may prevent some 7-eleven employees, particular visa-holders, from coming forward to an internal 7-Eleven process now the Fels Wages Pane has been abolished.

It is encouraging visa-holders at 7-Eleven who are concerned about the impact that a claim of underpayment may have on a visa to contact the Ombudsman.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

Lendlease gains approval for $1.7b transformation of Queen Victoria Market precinct

Lendlease gains approval for $1.7b transformation of Queen Victoria Market precinct

Australian development giant Lendlease Group (ASX: LLC) has been gr...